ARR reaches $11.5 million; NRR reaches 99.3%

EngineRoom transaction establishes a $12 million-plus annualized revenue platform and expands CXAI from enterprise workplace AI into the mid-market

PALO ALTO, CA / ACCESS Newswire / August 13, 2026 / CXApp Inc. (Nasdaq:CXAI) (“CXAI” or the “Company”), an AI-powered enterprise software company, today announced financial and operating results for the second quarter ended June 30, 2026.

The second quarter represented a significant inflection point for CXAI as the Company delivered strong sequential and year-over-year revenue growth, completed the transformative EngineRoom acquisition, expanded its enterprise customer base and advanced CXAI 2.0 from strategy into production deployment.

Q2 2026 Financial Highlights

  • Revenue of approximately $1.7 million, up 79% sequentially from $0.95 million in Q1 2026 and approximately 42% year-over-year.

  • Annual Recurring Revenue increased to approximately $11.5 million, compared with $3.6 million at the end of Q1 2026 and $4.5 million a year ago.

  • Net Revenue Retention of 99.3%, demonstrating continued strength across the Company’s recurring customer base.

  • Total assets increased to approximately $36 million, compared with $33 million in Q1 2026 and $29.6 million in Q2 2025.

  • Cash EBITDA improved sequentially to approximately $(2.68) million, compared with $(3.0) million in Q1 2026.

  • Revenue growth materially outpaced expense growth during the quarter, with operating expenses increasing approximately 5.6% sequentially compared with revenue growth of 79%.

Q2 Strategic and Commercial Highlights

Completed the transformative EngineRoom acquisition.
The transaction materially expands CXAI’s scale, recurring revenue base, customer reach and mid-market distribution capabilities. EngineRoom brings more than 50 mid-market customer relationships, a highly recurring revenue model, growth and performance data, and an established commercialization engine for CXAI’s Agentic AI solutions.

Secured two major Fortune 500 renewals.
CXAI renewed two significant enterprise relationships, reinforcing the durability of its installed base and the mission-critical role of the Company’s workplace platform inside large enterprises.

Won a major new financial-services customer.
CXAI signed a new multi-million-dollar, three-year agreement with a large financial-services institution, providing another important validation of the Company’s enterprise platform and expanding presence within regulated financial services.

Advanced CXAI 2.0 into production.
The CXAI 2.0 platform is now available to all its existing and new enterprise clients. CXAI 2.0 advances the Company’s strategy from workplace applications toward an Agentic AI operating layer that understands context, prioritizes actions and executes workflows across enterprise systems.

EngineRoom expanded a significant customer and secured commitments
EngineRoom expanded a significant customer engagement by 5X+ as well as securing commitments from existing clients in their annuals process further validating the strength of the acquired business and its role as CXAI’s mid-market growth and distribution engine.

Management Commentary

“Q2 was one of the most important quarters in CXAI’s evolution,” said Khurram Sheikh, Chairman and Chief Executive Officer of CXAI. “We grew revenue 79% sequentially, materially expanded ARR, maintained approximately 99% net revenue retention, secured major enterprise renewals and new customer wins, and completed a transaction that fundamentally changes the scale and opportunity of our business.”

“EngineRoom is much more than an acquisition of revenue. It brings CXAI a profitable recurring business, more than 50 mid-market customer relationships, growth and performance intelligence, and a distribution engine through which we can productize and commercialize CXAI’s Agentic AI capabilities.”

“At the same time, CXAI 2.0 is moving from vision to execution. We are expanding our platform from place, where and how people work, to person, how individuals and teams prioritize and execute work, and now to business, how companies acquire customers, convert demand and grow.”

“Our strategy is becoming increasingly clear: anchor CXAI with blue-chip enterprise relationships, use EngineRoom to create mid-market scale, and deploy one shared Agentic AI platform across both. We believe this combination gives CXAI the opportunity to grow revenue while increasing software mix, improving operating leverage and building toward profitable growth.”

EngineRoom: Transforming the Scale and Reach of CXAI

The EngineRoom acquisition creates a substantially different operating foundation for CXAI.

At the time of the transaction, EngineRoom represented more than $8 million of annual revenue, approximately $1.6 million of adjusted EBITDA, approximately 94% recurring revenue and more than 50 mid-market customer relationships.

Combined with CXAI’s enterprise customer base, workplace intelligence platform and Agentic AI technology, the transaction establishes an annualized revenue platform exceeding $12 million and creates opportunities for greater revenue scale without proportional growth in operating expenses.

CXAI 2.0: Expanding from Place to Person to Business

CXAI is evolving from a workplace experience application into an Agentic AI Operating Layer designed to power exceptional enterprise customer experiences.

The CXAI 2.0 platform brings together three expanding intelligence domains:

PLACE -Flow
Workplace and spatial intelligence that understands where and how people work.

PERSON -Beat
Personal and team execution intelligence designed to understand what employees need to accomplish and help move work toward completion.

BUSINESS -EngineRoom
Growth Intelligence that connects customer acquisition, marketing, sales, attribution and business-performance context to recommended and ultimately automated actions.

Second-Half Priorities

CXAI enters the second half of 2026 focused on converting the expanded foundation created in Q2 into durable growth and operating leverage.

Management priorities include:

  • Flawless execution and expansion across the enterprise customer base.

  • Integration of EngineRoom and realization of operating synergies.

  • Cross-selling CXAI solutions into EngineRoom’s mid-market customer base.

  • Continued development of CXAI Beat and other AI-driven software modules.

  • Advancing the Company’s path toward break-even and ultimately profitable growth.

Sheikh concluded:

“The pieces of the strategy are now coming together. We have enterprise customers and trust. We have an Agentic AI platform in production. We have substantially greater recurring revenue scale. We now have a mid-market customer and distribution engine through EngineRoom. And we have a clear roadmap for converting these assets into higher-value, increasingly software-driven solutions.”

“Q2 established the foundation. Our focus now is execution, integration and scale.”

Webcast

CXAI will host its second-quarter 2026 Earnings Call and Investor Forum on August 13, 2026.

Time: 2:00 PM to 4:00 PM Pacific Time (5:00 PM to 7:00 PM Eastern Time).
Webcast: CXAI Q2 Earnings Call & Investor Forum

A replay of the webcast and accompanying investor presentation will be available through the Company’s investor relations website following the event at www.cxapp.com through August 13, 2027.

About CXAI

CXAI is an enterprise agentic AI platform company focused on helping organizations improve productivity, automate workflows and enhance business performance through artificial intelligence.

The Company’s platform combines operational intelligence, analytics, workplace technologies and intelligent automation to deliver measurable business outcomes across enterprise and mid-market organizations.

CXAI serves customers across technology, financial services, healthcare, media and other industries while expanding its AI capabilities through both organic growth and strategic acquisitions.

www.cxapp.com

CXApp Inc.: marketing@cxapp.com

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company’s auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the demand for the Company’s services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company’s services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company’s business; difficulties of managing growth profitably; the loss of one or more members of the Company’s management team; loss of a major customer and other risks and uncertainties included from time to time in the Company’s reports (including all amendments to those reports) filed with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication.

SOURCE: CXApp Inc.

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